Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,490 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,610 |
| 5 Bedrooms | $3,028 |
| 6 Bedrooms | $3,391 |
| 7 Bedrooms | $3,662 |
| 8 Bedrooms | $3,845 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $240,560 | 0.74% | D |
| 3BR | $2,290 | $361,745 | 0.63% | D |
| 4BR | $2,610 | $465,539 | 0.56% | F |
| 5BR | $3,028 | $553,281 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP 60465, located in the suburban community of Palos Hills, IL, is characterized by a predominantly owner-occupied residential landscape. With a total population of 18,081, only 23.1% of residents are renters, indicating a strong preference for homeownership among local residents. The median household income stands at $83,533, reflecting a middle-class area where most residents have stable financial situations. The median home value in the area is $279,957, which suggests a modestly priced housing market that is accessible to many families.
The economic dynamics of renting in ZIP 60465 are particularly interesting for potential investors. According to the Fair Market Rent (FMR) set for the fiscal year 2024, the average rent for a voucher holder in this zip code is $1,550. This figure contrasts sharply with the Zillow Observed Rental Index (ZORI), which indicates an average market rent of $1,700. This discrepancy presents an opportunity for investors who can manage properties effectively to attract both voucher holders and market-rate tenants.
Given these parameters, ZIP 60465 is well-suited for hands-on value-add buyers rather than hands-off operators. While the percentage of renters is relatively low, the difference between FMR and market rents provides a margin for managing properties profitably. Investors who are willing to engage actively in property management and possibly renovations could benefit from this gap, attracting voucher holders while maintaining the possibility of renting to those paying market rates. This approach requires a strategic understanding of both the rental market and the intricacies of working with Section 8 vouchers, making it less suitable for passive investors looking for minimal involvement.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.